Recently, the groundbreaking ceremony for Jinchuan Zhixin Boyan New Energy Co., Ltd. (hereinafter referred to as “Jinchuan Zhixin”)’s 2.5 GWh lithium iron phosphate energy storage battery and equipment manufacturing project was held in Jinchuan District.

In 2022, Guchuan Lianxing entered into an investment promotion partnership with Jinchuan District, Jinchuan City, and helped facilitate the launch of the Jinchuan Zhixin project that same year.

△ Scene from the groundbreaking ceremony for the Jinchang Zhixin project / Jinchuan Release

The project has a total investment of 1.29943 billion yuan and will be constructed in two phases.

Currently, the standardized factory buildings for Phase I have been fully renovated, and the Phase II project—for which the groundbreaking ceremony was just held—has entered the foundation construction phase.

The Rationale Behind Jinchuan’s Site Selection

The Jinchang Zhixin project was established here primarily due to the region’s unique resource advantages.

Ranking third globally in nickel reserves and second domestically in copper and cobalt reserves, Jinchang provides a solid resource foundation for the development of new energy battery materials and the battery industry.

According to statistics, Jinchang supplies over 65% of the 33 key raw materials required for lithium battery production. Furthermore, as the industrial cluster gradually takes shape, this ratio is expected to rise to 82%.

This means that material transportation times for the Jinchang Zhixin project will be significantly reduced, thereby cutting production costs.

Furthermore, Yuanxin Energy Storage, the company behind the Jinchang Zhixin project, should not be overlooked.

Founded in 2019, Yuanxin Energy Storage is a high-tech enterprise specializing in the R&D, integrated design, and production of battery energy storage products. In 2022, it independently led the design and construction of over 30 projects, with a total project scale exceeding 2 GWh.

In terms of market position, Yuanxin Energy Storage has established three major production bases in Jiangsu, Yunnan, and Jinchang. In 2022, its energy storage system shipments exceeded 2 GWh, ranking 8th domestically and 13th globally.

In terms of external partnerships, in January 2023, Yuanxin Energy signed a strategic cooperation agreement with Pangu Sodium Energy to actively explore application scenarios and product demands in the sodium-ion energy storage market.

Regarding capital raising, in May 2023, Yuanxin Energy completed an exclusive pre-seed financing round of tens of millions of yuan led by Yuecai Zhongyin Fund, primarily to increase R&D investment.

It is evident that as orders of various types continue to accumulate both domestically and internationally, Yuanxin Energy Storage is poised to further expand its production footprint to support production and delivery.

As the energy storage industry accelerates its development, GuChuan Lianxing will remain attentive to industry trends, promptly follow up and explore opportunities, facilitate precise connections between government and enterprises, and contribute to the industry’s healthy and sustainable development.

Energy Storage—The Lifeblood of "Carbon Neutrality"

Today, the share of clean energy consumption has further increased, becoming an indispensable part of the “dual carbon” goals, and the new energy industry has entered an unprecedented boom cycle.

Additionally, clean energy sources such as wind and solar power are subject to uncertainty and volatility. As installed capacity surges, the resulting grid integration challenges have become increasingly prominent. Therefore, the role of energy storage in balancing the grid is crucial.

After several years of modest growth, the energy storage industry has finally taken off.

In recent years, projects facilitated by Guichuan Lianhang—including the Tianshun Energy Storage Equipment Manufacturing Project in Baidong New District, the Wind-Solar-Storage Integrated Base Project in Changzhi Economic Development Zone, and the Lithium-Ion Battery Production Project in Bazhong Economic Development Zone—have all exceeded 500 million yuan in total investment.

However, the energy storage industry is currently in its early stages of development, and it is no exaggeration to describe it as a “mixed bag”; the phenomenon of companies creating “new concepts” to “raise funds” still persists.

Therefore, when attracting investment in the energy storage sector, investment promotion personnel must include a company’s cash flow and profits in their evaluation criteria to gain a clear understanding of its actual operational status.

Given current trends, a shakeout in the energy storage sector is imminent.

Faced with countless companies “desperate for support,” beyond simply providing land, funding, and policies, whoever can assist these companies in identifying a differentiated market position and streamlining relationships across the industrial chain will gain a head start in the race to capture new market opportunities.

Seeing the rapid progress and positive development of the Jinchang Zhixin project in Jinchuan, we have every reason to believe that this resource-based city’s campaign for transformation and upgrading will undoubtedly achieve a resounding victory.

Reflections on the Transformation of Resource-Based Cities

In 2022, GDP reached 52.252 billion yuan, a year-on-year increase of 13.5%, with a nominal growth rate as high as 21.91%, ranking first in Gansu Province—this is the economic report card Jinchang has delivered.

These rapidly growing economic figures not only reflect Jinchang’s development but also demonstrate its sense of responsibility.

△ Jinchuan District, Jinchang City / Jinchuan Release

As the “vanguard” driving the transformation and upgrading of Jinchuan City’s industrial structure, Jinchuan is making every effort to establish six advanced districts, build five major industrial clusters, develop four industrial parks, foster a first-class business environment, and promote high-quality economic and social development across the city.

Amid the interplay of the old and the new, this city, situated along the Hexi Corridor that spans millennia, has witnessed the path of a nation’s rejuvenation.

With the orderly advancement of the Modern Agricultural Circular Economy Industrial Park, the SME Innovation and Entrepreneurship Park, the Smart Logistics Industrial Park, and the E-commerce Industrial Park, Jinchuan has set sail amid the opportunities of the times, becoming a haven for investment and entrepreneurship, a hub for project aggregation, and a high ground for reform and opening-up.

△ Jinchuan National Economic and Technological Development Zone / Jinchuan Release

As a partner of Jinchuan, we sincerely invite investors and entrepreneurs to take an interest in Jinchuan, invest in Jinchuan, and establish roots here, so that we may all share in the opportunities presented by the transformation and development of this resource-based city.

In the future, Guchuan United will further expand its investment promotion cooperation with Jinchuan District, Jinchuan City.

We will also dedicate more resources and effort to helping more enterprises find their ideal “new home,” forging a new chapter as we advance toward high-quality development.